Production segment pretax income was $572.6 million, down 7% from the prior quarter and up 182% from the fourth quarter of 2019, driven by continued growth in direct lending and strong performance across all channels. If you have an ad-blocker enabled you may be blocked from proceeding. This website may include combined information from PennyMac Financial Services, Inc. ("PFSI") and PennyMac Mortgage Investment Trust ("PMT") collectively Pennymac. Contact our customer service team with any inquiries by sending us a message through the Message Center by simply logging in to your account. We believe the growth opportunities in front of us to be substantial and as we continue to grow our direct lending channels, we expect PennyMac Financials exceptional financial performance to persist through 2021. This grew our servicing portfolio to over $426 billion in UPB even with elevated prepayment speeds. The shares were sold at an average price of $60.80, for a total transaction of $912,000.00. Colorado office: 5500 South Quebec Street, Suite 260 Greenwood Village, CO 80111, (877) 215-2552. In the fourth quarter, the pretax income was $234.1 million, a 31% decrease from . Ill now turn it over to Dan Perotti, Senior Managing Director and Chief Financial Officer to speak to the financial results for the quarter. Isaac Garden - Investor Relations. PennyMac Financial Services, Inc. a annonc que Doug Jones, prsident et directeur des services hypothcaires, a rejoint son conseil d'administration compter du 1er mars 2023. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. Economic forecasts are calling for the mortgage origination market to remain strong in 2021, and while these forecasts vary, they currently average $3.3 trillion. The ex-dividend date was Monday, February 13th. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 1.46. Headquarters. This chart shows David Spector's buying and selling at PennyMac Financial Services by year and by quarter. The percentage of profitable transactions made by David Spector is 44%. Find the best performing Analyst in each sector. Actual performance may differ significantly from backtested performance. 3043 Townsgate Road, Suite 200, Westlake Village, California 91361, US, View 33% of correspondent acquisitions were government loans and 67% were conventional loans. We estimate we are now represent approximately 2.5% market share in the channel with over 2,000 brokers approved to offer our products, an increase of 11% from March 31, 2021. The UPB of completed modifications was $5.5 billion, essentially unchanged from the prior quarter, and the UPB of EBO loan volume totaled $6.8 billion, up from $4.2 billion in the prior quarter. Dan Perotti, PFSI's Senior Managing Director and Chief Financial Officer, will discuss our financial performance in more detail later on in his discussion. Operating expenses were also down quarter-over-quarter as the prior quarter included seasonal accruals of compensation related expenses. If so, please call us at 866.545.9070. Thanks, Doug. Enter your email to receive our newsletter. Hedging and related gains totaled $91 million. Our Investment Management segment delivered pretax income of $2.6 million, down from $3.3 million in the prior quarter and down from $5.2 million in the fourth quarter of 2019. And with that, I would like to turn it back to David for some closing remarks. Finally, Barclays lifted their price objective on PennyMac Financial Services from $58.00 to $69.00 and gave the company an equal weight rating in a report on Friday, February 3rd. While 2020 was a record, we have a long track record of strong performance. PennyMac Financial Services, Inc. (NYSE: PFSI) announced today that Doug Jones, President and Chief Mortgage Banking Officer, joined its Board of Directors effective March 1, 2023. Importantly, PennyMac retains the servicing rights and carries an option to repurchase these government-insured loans in the event they become eligible for redelivery into Ginnie Mae securities. Wells Fargo & Company raised PennyMac Financial Services from an equal weight rating to an overweight rating and lifted their price objective for the company from $54.00 to $75.00 in a report on Tuesday, December 6th. Ready to apply or complete your application? #PennymacCaresVisit PENNYMAC.COM for details about how were assisting our family of customers during the COVID-19 crisis. Our direct lending channels have an outsized impact on production segment earnings, as Dan will discuss later. So, from our home to yours, thank you! PennyMac remained the largest correspondent aggregator in the U.S. in the fourth quarter. Thank you. The expertise of our deep management team, combined with the technology investments we have made, support PennyMac's growth strategy in a changing mortgage market. His family and PennyMac, which announced his passing, said he died from complications . Before I turn this over to Andy, I want to take a moment to say all of us at PennyMac are very grateful for the many kind thoughts and tributes we have received since announcing the sad passing of Stan Kurland, our founder and Chairman. {{ userNotificationState.getAlertCount('bell') }}. The stock was sold at an average price of $60.80, for a total value of $912,000.00. For the total servicing portfolio, we facilitated approximately 291,000 forbearance plans for our customers, with over 90% of those enrolled through our automated channels. Backtested results are adjusted to reflect the reinvestment of dividends and other income and, except where otherwise indicated, are presented gross-of fees and do not include the effect of backtested transaction costs, management fees, performance fees or expenses, if applicable. Tower Research Capital LLC TRC Increases Stake in Centrus Energy Corp. 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Also, our investments in technology, such as our cloud-based proprietary servicing system, have helped us to maximize economies of scale and grow efficiently, and help drive strong results for years to come. Each of our business segments performed well during the fourth quarter as the continued low interest rate environment drove record production volumes across all of our channels. This expertise and experience has served us well, enhancing our ability to help many borrowers affected by the COVID-19 pandemic. Enter your email address below to get our daily insider buying and selling report. Dan Perotti , PFSIs Senior Managing Director and Chief Financial Officer will discuss the financials in more detail later on in this discussion. This performance added to a remarkable year that saw PFSI achieve a return on equity of 62% with almost $200 billion in UPB of loans funded. Sign up for a free account. Direct lending locks were up 13% from the prior quarter, total correspondent lock volume was up 9% and the servicing portfolio was up 6% from the end of the third quarter. In July, originations for our consumer direct channel totaled $3.5 billion and locks totaled $5.5 billion. For any questions, please visit our website at ir.pennymacfinancial.com or call our Investor Relations department at 818-264-4907. And with that, I would like to turn it back to David for some closing remarks. Item 1.01 Entry into a Material Definitive Agreement. Within our consumer direct lending channel, initiatives include enhancing our lead generation capabilities and use of data analytics, in addition to increasing the use of digital marketing to drive non-portfolio originations. The origination market continues to be strong on a historical basis as mortgage rates have recently returned to near record lows. JMP Securities lowered PennyMac Financial Services from an outperform rating to a market perform rating in a report on Wednesday, January 18th. The Production segment includes mortgage loan origination, acquisition, and sale activities. This growth will be crucial in further expanding our direct lending channels and supporting our growing servicing infrastructure. PennyMac Financial Services, Inc. (NYSE:PFSI) Q2 2021 Earnings Conference Call August 5, 2021 5:05 PM ET, Isaac Garden - Vice President, Investor Relations, David Spector - Chairman & Chief Executive Officer, Andy Chang - Senior Managing Director & Chief Operating Officer, Doug Jones - President & Chief Mortgage Banking Officer, Dan Perotti - Senior Managing Director & Chief Financial Officer. We are growing our best-in class tools and solutions we provide our brokers with to further enhance their self-service capabilities. This growth has focused on new customer acquisition and resulted in our non-portfolio interest rate lock commitments hitting a record in the fourth quarter at 1.3 billion, up from 906 million in the third quarter, an increase of 43%. While Kurland had been battling brain cancer, the cause of death was attributed to complications from COVID-19, separate . The shares were sold at an average price of $60.64, for a transaction totalling $1,586,888.16. David served as President and Chief Investment Officer and President and Chief Operating Officer for PennyMac. During the last ninety days, David A. Spector has sold $2,498,888.16 in shares of PennyMac Financial Services stock. While industry production margins declined in the second quarter, we saw a smaller decrease in overall production margin given the mix shift towards our consumer direct lending channel. The fair value of our MSR decreased modestly in the fourth quarter, driven by higher-than-expected prepayments, increased projections for short-term prepayments and elevated levels of early buyout activity. David Spector's role in PennyMac Mortgage is Chairman & CEO, Director. Revenue per fallout-adjusted lock was 71 basis points, down from 140 basis points in the prior quarter. Production segment pretax income was $244.4 million, down 33% from the prior quarter and 55% from the second quarter of 2020. As you can see in greater detail on slide 21, EBO loan-related revenue increased significantly to $233.3 million as a result of continued loss mitigation activity with borrowers emerging from forbearance while related expenses were modest as most of the loans bought out returned to performing status immediately. Insiders at PennyMac Financial Services own 18.0% of the company. Looking at the consumer direct channel in the center column, we originated $8 billion in UPB of loans, up 27% from the prior quarter and 113% from the fourth quarter of 2019. Learn More about David A. Spector's net worth. With that, I will turn the call over to Andy Chang, Senior Managing Director and Chief Operating Officer, who will go through some of the initiatives we are focused on to position us for future success in the years to come. BBB File Opened: 2/5/2015. For any questions, please visit our website at ir.pennymacfinancial.com, or call our Investor Relations department at 8182644907. We encourage investors with any questions to reach out to our Investor Relations team by e-mail or phone. These technology investments are critical drivers to the growth of our direct lending businesses. David Spector is currently Chairman of the Board, President and Chief Executive Officer at PennyMac - View - PennyMac org chart Up to 5 The history of PennyMac Financial was borne out of the Great Financial Crisis, with a desire to help distressed borrowers. PennyMac Financial again delivered outstanding financial performance in the second quarter, driven by continued strong production and core servicing results partially offset by net MSR fair value declines. Learn More on PennyMac Financial Services' active insiders. The slides that accompany this discussion are available on PennyMac Financials website at ir.pennymacfinancial.com. Net income was $453 million or diluted earnings per share of $5.97 resulting in book value growth per share of 15% to $47.80, up from $41.67 at the end of the prior quarter. Net income in the fourth quarter was the second highest in the history of. Net income was $204 million or diluted earnings per share of $2.94, representing an annualized return on equity of 23%. What is David Spector's role in PennyMac Mortgage? This net worth estimate does not reflect any other assets that Mr. Spector may own. And as our production mix continues to shift toward direct lending, production expenses as a percentage of fallout-adjusted locks are expected to trend higher. The corporate mailing address for Mr. Spector and other PennyMac Financial Services executives is 3043 TOWNSGATE ROAD, WESTLAKE VILLAGE CA, 91361. Fourth quarter performance was very strong across loan production and servicing and we continue to see the strength of our balanced business model in our results. 130 Westlake Village, CA, 91362 Get Directions. Being one of the Find contact details for 700 million professionals. PennyMac Loan Services, LLC Attention: Correspondence Unit PO Box 514387 Los Angeles, CA 90051-4387, Notice of Error and Information Requests Only. How do I contact David A. Spector? This concludes PennyMac Financial Services, Inc.s fourth quarter earnings discussion. Similarly, lock volume totaled $4.5 billion, down 21%. We believe this represents approximately 13% of the total brokers and non-delegated sellers active in the market today, providing continued room for growth and expansion within the channel in the future. Servicing advances outstanding decreased to approximately $424 million at June 30 from $437 million at March 31. 10 Ratings. Thank you, David. PennyMac Mortgage Investment Trust (NYSE:PMT) Q1 2021 Earnings Conference Call May 6, 2021 5:00 PM ETCompany Participants. The percentage of loans in forbearance decreased to 4.9% at June 30 from 6.3% at March 31, as borrowers in forbearance plans at March 31 who have since exited more than offset new forbearance plans. Thanks, Andy. Chief Enterprise Ops Officer Jeffrey Grogin sold 13,521 shares of PFSI stock on 01/04/2021 at the average price of $62.53. No cash balance or cash flow is included in the calculation. Russia's war on Ukraine latest: Putin casts war as battle for nation's survival, India FM Jaishankar says Soros dangerous, debate needed on democracy, Buffett's Berkshire profit falls on investments, currencies, Bill Gates buys Heineken stake, despite saying he's 'not a big beer drinker', Elon Musk recruits team to develop OpenAI rival - The Information, Hedge fund manager Chris Hohn demands Airbus drop Atos deal - letter, Elon Musk's challenge: Stay ahead of the competition, ISS urges Apple shareholders to vote for CEO Tim Cook, other execs' pay packages, Elon Musk accuses media of racism after newspapers drop 'Dilbert' cartoon, French media billionaire Niel fails with bid for TNT television frequence - Arcom, Private National Mortgage Acceptance Co. LLC. This was all done while the vast majority of our employees were working from home for most of the year. 119504607, 119505929, 119506567, 119506570, 119507419. Mr. David Spector, CEO Mr. Andrew Chang, CFO Mr. Derek Stark, Chief Legal Officer Additional Contact Information Phone Numbers (800) 777-4001 Other Phone Email Addresses Email this. And while we believe the mortgage market will continue to change from a competitive and regulatory perspective, the infrastructure and risk management disciplines that distinguish PennyMac from others in the industry position us well. David Spector Work Experience and Education Work Experience Chairman & Chief Executive Officer PennyMac Mortgage Investment Trust 2007-2022 Chief Credit Officer Santander Consumer USA 2013-2016 Co-Head of Global Residential Mortgages Morgan Stanley 2005-2008 Global Managing Director, Banking & Markets Bank of America 2004-2010 Education This high level of efficiency was largely due to our cloud-based, proprietary servicing system, otherwise known as SSE. 47.206 (3) & (4). On Wednesday, March 1st, David Spector sold 26,169 shares of PennyMac Financial Services stock. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Now Ill turn it over to Doug Jones, PFSIs Senior Managing Director and Chief Mortgage Banking Officer to provide you some more details on our mortgage banking businesses. David works at Pennymac Loan Services, Llc as Chief Investment Officer. million verified professionals across 35 million companies. PennyMac Financial Services Inc., a national mortgage lender and servicer, announced Thursday that Doug Jones has joined its board of directors. PennyMac Financial reported strong earnings in the fourth quarter driven by core production and servicing results. While we experienced hedging losses in the quarter, the decrease was more than offset by PFSIs production income.
